Here is what I found as the ONLY working solution. It is valid for ALL modules for PS 1.7 I believe.
The .tpl file needs to be in its original place in /modules/views/templates/...etc... and the strings need to be present in the following format:
{l s='...Your content...' mod='ps_yourmodule'}
The new translation system presented by PS 1.7 DOES NOT work for modules yet. So d='Module.MyModule.Shop' does not work.